With wages dropping, unemployment rising and a shift towards sales of lower priced homes, among other factors, December sales took a big hit:
“Sales of previously owned homes took their biggest tumble in at least 40 years last month as the impact of a buying spree spurred by a tax credit for first-time buyers waned, according to industry data released Monday.
Those who rushed to meet the original November deadline to take advantage of an $8,000 tax credit for first-time home buyers caused a surge in sales earlier in 2009, but left the market wobbly by the end of the year. First-time buyers, who made up more than 50 percent of sales earlier last year, represented just 43 percent of the market in December. The shift also resulted in fewer sales of lower-cost homes, which first-time buyers typically seek.
After three months of increases, sales of existing homes, including condos and single-family residences, fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million in December compared with the previous month, according to National Association of Realtors data.
It was also the biggest monthly decrease on records that date to 1968, according to the industry group.“(Emphasis added.)
The full article -
http://www.washingtonpost.com/wp-dyn/content/article/2010/01/25/AR2010012502164.html
